Before you sign for a car, a personal loan or any other installment loan, you want to know two numbers: how much you will pay each month and how much the loan costs in total. This loan calculator gives you both, plus the payoff date, a month-by-month amortization schedule and the effect of paying a little extra each month.
Quick answer: A $25,000 loan at 7% APR for 5 years costs $495.03 a month and $4,701.80 in interest. A $10,000 loan at 8% for 5 years is $202.76 a month. Paying $100 extra a month on the $25,000 loan clears it 11 months sooner and saves $938.99.
How to use the loan calculator
- Enter the loan amount you plan to borrow.
- Enter the interest rate (APR) from your offer.
- Enter the loan term and choose years or months (auto loans are often quoted in months: 36, 48, 60, 72).
- Optionally add an extra monthly payment and the first payment date.
- Press Calculate to see the payment, total interest, payoff date and the yearly and monthly amortization tables.
How is a loan payment calculated?
Fixed-rate installment loans use the standard amortization formula, the same one lenders use:
| Item | Formula | $25,000, 7%, 5 years |
|---|---|---|
| Monthly rate (r) | APR ÷ 12 ÷ 100 | 0.07 ÷ 12 = 0.0058333 |
| Number of payments (n) | Years × 12 | 60 |
| Monthly payment (M) | P × r ÷ (1 − (1 + r)^−n) | $495.03 |
| Interest in a month | Balance × r | First month: $145.83 |
| Principal in a month | M − interest | First month: $349.20 |
| Total paid | M × n | $29,701.80 |
| Total interest | Total paid − P | $4,701.80 |
If the rate is 0%, the payment is simply the loan amount divided by the number of payments ($50,000 over 60 months = $833.33).
What is the monthly payment per $10,000 borrowed?
Multiply these figures by your loan size in $10,000s. A $30,000 loan at 7% for 5 years is 3 × $198.01 = $594.03 a month. The full chart from 4% to 15% is below the calculator.
| APR | 3 years | 4 years | 5 years | 6 years | 7 years |
|---|---|---|---|---|---|
| 5% | $299.71 | $230.29 | $188.71 | $161.05 | $141.34 |
| 6% | $304.22 | $234.85 | $193.33 | $165.73 | $146.09 |
| 7% | $308.77 | $239.46 | $198.01 | $170.49 | $150.93 |
| 8% | $313.36 | $244.13 | $202.76 | $175.33 | $155.86 |
| 10% | $322.67 | $253.63 | $212.47 | $185.26 | $166.01 |
| 12% | $332.14 | $263.34 | $222.44 | $195.50 | $176.53 |
| 15% | $346.65 | $278.31 | $237.90 | $211.45 | $192.97 |
How much is the payment on a $5,000 to $50,000 loan?
Monthly payments at 8% APR, a typical rate for a borrower with good credit:
| Loan amount | 3 years | 5 years | 7 years |
|---|---|---|---|
| $5,000 | $156.68 | $101.38 | $77.93 |
| $15,000 | $470.05 | $304.15 | $233.79 |
| $20,000 | $626.73 | $405.53 | $311.72 |
| $30,000 | $940.09 | $608.29 | $467.59 |
| $40,000 | $1,253.45 | $811.06 | $623.45 |
| $50,000 | $1,566.82 | $1,013.82 | $779.31 |
Worked examples
Auto loan: $35,000 over 72 months
At 7.5% APR the payment is $605.15 and the interest totals $8,571.08. The longer term keeps the payment low, but you pay interest for six years and may owe more than the car is worth in the early years.
Personal loan: $10,000 over 3 years
At 12% APR the payment is $332.14 and you repay $11,957.15 in total, so the loan costs $1,957.15.
Paying extra: $25,000 at 7%
The scheduled payment is $495.03. Adding $100 a month (paying $595.03) ends the loan after 49 payments instead of 60. With a first payment on November 1, 2026, the last payment moves from October 2031 to November 2030, and you keep $938.99 of interest.
How to read your results
- The bar shows how much of everything you pay goes to principal and how much to interest. The longer the term and the higher the rate, the bigger the interest share.
- The yearly table is the quickest way to see how slowly the balance falls at first: in year 1 of the $25,000 example, $1,612.91 of the $5,940.36 you pay is interest.
- Compare offers by total cost, not just the payment. A lower payment from a longer term almost always means more interest.
- Want the percentage? Interest as a share of the loan is easy to check with the percentage calculator.
- Buying a home? Mortgages add property tax, insurance and PMI to the payment; use the mortgage calculator.
- Saving instead of borrowing? See what the same money earns in a certificate of deposit with the CD calculator.
Common mistakes
- Using the yearly rate as the monthly rate. Divide the APR by 12 first; 7% a year is about 0.583% a month.
- Comparing only monthly payments. Stretching a loan from 48 to 72 months lowers the payment and raises the total cost.
- Forgetting fees. Origination fees and add-ons raise the APR; ask for the APR and the total of payments in writing.
- Assuming extra payments go to principal. Some lenders apply extra money to the next payment instead; ask them to apply it to principal.
- Ignoring prepayment penalties. Most auto and personal loans have none, but read the contract before paying early.
These figures are estimates for planning, not an offer of credit. Your actual rate, payment and schedule depend on your lender and credit; check with your lender before you borrow.
Frequently asked questions
How do I calculate a monthly loan payment?
Use M = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the annual rate divided by 12 (as a decimal) and n is the number of monthly payments. For $25,000 at 7% for 5 years, r = 0.07 ÷ 12 = 0.005833 and n = 60, so the payment is $495.03.
What is the monthly payment on a $10,000 loan?
It depends on the rate and term. At 8% APR a $10,000 loan costs $313.36 a month over 3 years, $202.76 over 5 years and $155.86 over 7 years. At 12% over 3 years it is $332.14 a month, with $1,957.15 of total interest.
How much interest will I pay on a $25,000 loan?
At 7% APR over 5 years you pay $4,701.80 in interest, so the total of all 60 payments is $29,701.80. Stretching the same loan to a longer term lowers the payment but raises the total interest.
How much do extra payments save on a loan?
Extra money paid toward principal cuts the balance that interest is charged on. Adding $100 a month to a $25,000, 7%, 5-year loan pays it off in 49 payments instead of 60 and saves $938.99 in interest. Check that your lender applies extra payments to principal and does not charge a prepayment penalty.
What is an amortization schedule?
It is a table showing every payment split into interest and principal, with the balance left afterward. Early payments are mostly interest; later payments are mostly principal. In the $25,000 example, the first payment is $145.83 interest and $349.20 principal.
Is APR the same as the interest rate?
Not always. The interest rate is the cost of borrowing the principal; the APR also includes certain fees, expressed as a yearly rate. If your loan has no fees they are the same. Your payment is based on the interest rate, so use the note rate for the most exact payment and the APR to compare offers.
Is a shorter or longer loan term better?
A shorter term means higher payments but much less interest. $35,000 at 7.5% costs $605.15 a month over 72 months with $8,571.08 of interest; over 48 months the payment rises but the interest falls by more than a third. Choose the shortest term whose payment fits comfortably in your budget.
Does this calculator work for auto, personal and student loans?
Yes, for any fixed-rate loan repaid in equal monthly installments, including most auto loans and personal loans. It does not model variable rates, interest-only periods, income-driven student loan plans or credit cards.
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